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State of Connecticut Labor Situation | Last Updated: September 18, 2025![]() |
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CT August nonfarm payrolls increase 900 and the unemployment rate (3.8%) holds firm | ![]() |
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WETHERSFIELD, September 18, 2025 - Connecticut nonfarm industry payrolls increased 900 jobs (0.1%) in August 2025, to a level of 1,720,200, while the state's unemployment rate was stable at 3.8% (preliminary, seasonally adjusted data) for the fourth month in a row. Nonfarm industry payrolls in the state are now 12,700 (0.7%) positions higher than a year ago and again at a new post-COVID high (just 700 jobs from the all-time high of 1,720,900, 3/08). The July 2025 preliminary job increase of 700 (0.04%) was revised slightly higher by 100 to an 800 jobs gain (0.1%) on the regular monthly revision. The August 2025 preliminary Connecticut jobless rate of 3.8% was unchanged for the fourth month in a row but is higher by six-tenths of one percent from a year ago (3.2%). Connecticut remains below the U.S. rate (currently 4.3% for August) for the 32nd consecutive month.
This labor statistics release presents current estimated data from two different monthly surveys (household and workplace) produced by the U.S. Bureau of Labor Statistics (BLS) in association with the states.
"After fluctuations earlier this year (some of which were related to a labor dispute) Connecticut has now posted two consecutive months of steady job growth at a sustainable pace," said Patrick Flaherty, Director of the Office of Research at the Connecticut Department of Labor. "The unemployment rate remains low and private sector employment is at an all-time high."
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Connecticut's Private Sector employment was up by 1,200 positions (0.1%) in August 2025 to 1,484,000 and is now up by 12,500 jobs (0.8%) from the August 2024 level. July's preliminary private sector gain of just 200 jobs (0.01%) was adjusted slightly upward by 300 to 500 (0.03%) payrolls. The total government supersector declined by 300 (-0.1%) positions in August to a level of 236,200 jobs and is now higher by just 200 (0.1%) positions over the year.
Connecticut's combined government supersector consists of all civilian federal, state, local, and tribal government employment, including public education and Native American casino jobs located on federally recognized tribal reservations.
Four of the ten major industry supersectors gained jobs in August 2025, while six supersectors declined. The four industry supersectors that increased employment or were unchanged in August 2025 included:
The six industry supersector that decreased in jobs in August 2025 were:
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Connecticut Labor Market Areas (LMAs): Three of the five of the major Connecticut LMAs (the 5 Metros formed from the CT Councils of Governments or COG regions) that are seasonally adjusted by the BLS (about 93.7% coverage of the state) revealed small nonfarm industry payroll gains in August 2025 while two declined. The Waterbury-Shelton LMA (0.3%, 163,200) led in monthly percentage increase and matched the Bridgeport-Stamford-Danbury LMA (0.1%, 412,800) with gains of 500 to pace regional numerical gains over-the-month. The Hartford-West Hartford-East Hartford LMA (0.03%, 611,400) also added 200 positions. On the other hand, the Norwich-New London-Willimantic LMA (-0.3%, 128,300) and the New Haven LMA (-0.1%, 295,700) both lost 400 jobs.
Note: The new five major Connecticut LMAs are independently estimated from the statewide data by the BLS and cover over 93% of the nonfarm employment in the state. As a result, estimates will not exactly sum to the statewide total. Furthermore, monthly Seasonal Adjustment (SA) on these 5 new designated COG-based labor markets may undergo some shifting seasonality effects due to the concurrent seasonal process exaggerating some movements on the new geographies due to the lack of more precise historical seasonal factors (because the metros are new). |
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Hours and Earnings: The August 2025 Private Sector average work week, not seasonally adjusted, averaged 33.6 hours (AWH). This is unchanged from the August 2024 average (0.0%, 33.6). Average hourly earnings (AHE) at $38.97 in August 2025, not seasonally adjusted, were up by $1.21 (3.2%) from the August 2024 average estimate of $37.76. The resulting August 2025 private sector average weekly earnings (AWE=AWHxAHE) were estimated at $1,309.39, higher by $40.65 (3.2%) from a year ago ($1,268.74). The Consumer Price Index for All Urban Consumers (CPI-U, U.S. City Average, not seasonally adjusted - all items index) for August 2025 was up 2.9% from a year ago. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note: Current all-employee private sector hours and earnings estimates can be volatile due to fluctuating sample responses.. |
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The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.4 percent on a seasonally adjusted basis in August, after rising 0.2 percent in July, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 2.9 percent before seasonal adjustment. The index for shelter rose 0.4 percent in August and was the largest factor in the all items monthly increase. The food index increased 0.5 percent over the month as the food at home index rose 0.6 percent and the food away from home index increased 0.3 percent. The index for energy rose 0.7 percent in August as the index for gasoline increased 1.9 percent over the month. The index for all items less food and energy rose 0.3 percent in August, as it did in July. Indexes that increased over the month include airline fares, used cars and trucks, apparel, and new vehicles. The indexes for medical care, recreation, and communication were among the few major indexes that decreased in August. The all items index rose 2.9 percent for the 12 months ending August, after rising 2.7 percent over the 12 months ending July. The all items less food and energy index rose 3.1 percent over the last 12 months. The energy index increased 0.2 percent for the 12 months ending August. The food index increased 3.2 percent over the last year. |
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State of Connecticut Unemployment Rate vs. United States Unemployment Rate |
The preliminary August 2025 unemployment rate rate for Connecticut was calculated by the BLS Local Area Unemployment Statistics program (LAUS) to be 3.8% (seasonally adjusted). This is now unchanged for four months in a row. CT's unemployment rate is up six-tenths of a percentage point from a year ago (3.2%, considered a statistically significant rate change OTY). The U.S. unemployment rate for August 2025 was 4.3%, up one-tenth of percentage point from the July 2025 rate (4.2%) and up one-tenth of a percentage point over the year from August 2024 (4.2%). | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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